As many financial experts like to point out, there’s no assurance that you can dramatically raise or lower your credit score in just six months.
But if your goal is to not only get your credit score back on track, but to do so quickly, those same experts have a whole toolkit of doable advice that can help you make major progress (which we’ve shared below).
While some of the advice may seem fairly obvious, like paying your bills on time each month and lowering your total debt, others may involve unconventional methods that few people have thought of.
The good news is that many people have seen noticeable improvements in their credit scores in as little as six months, despite the fact that the science underlying credit scores may appear mysterious. And you can too.
Building good credit is like building a house: it takes time, patience, and a solid foundation. While you can certainly take steps to improve your score in as little as 6 months, major moves upward generally take longer. Patience and responsibility (like making your monthly payments) are key here.
Building a Credit History from Scratch
If you’re starting from scratch the first step is to open a credit account, like a secured credit card. Secured cards are easier to qualify for because they require a security deposit which acts as collateral in case you can’t pay your balance. Use your card responsibly and pay it off in full each month to build a positive payment history.
Become an Authorized User
Another way to build credit without opening a new account is to become an authorized user on someone else’s credit card. This means you’ll have access to the card and its credit line, but the primary cardholder is ultimately responsible for the payments. Choose someone with good credit habits to maximize the positive impact on your score.
Get a Credit-Builder Loan
Credit-builder loans are small short-term loans designed specifically to help you build credit. The lender typically deposits the loan amount into a secured savings account until it’s repaid. As you make payments the lender reports this information to the credit bureaus, helping you build a positive credit history.
Take Out a Loan With a Co-signer
If you need a traditional loan but don’t have enough credit history, consider asking a family member or friend with good credit to co-sign for you. This means they’ll be responsible for the loan if you can’t repay it. Only take out a loan you can afford to repay to avoid damaging your credit.
Fastest Ways to Build Credit
While building good credit usually takes time, there are a few things you can do to speed up the process:
- Pay down your debt: This lowers your credit utilization ratio, which is a major factor in your credit score.
- Request a credit limit increase: This can also lower your credit utilization ratio, but be careful not to use the newly available credit.
- Set up autopay for all your bills: This prevents late payments, which can damage your credit score.
- Ask to be listed as an authorized user: This can give your credit score a quick boost if the primary cardholder has good credit.
- Dispute any errors on your credit reports: Incorrect information can drag your score down.
Maintaining a Good Credit Score
Once you’ve built good credit, you need to maintain it by:
- Monitoring your credit reports: Check for errors and dispute them if you find any.
- Paying your bills on time: This is the most important factor in your credit score.
- Applying for new credit sparingly: Each credit application can cause your score to drop a few points.
Building Good Credit Takes Time
While you can take steps to improve your credit score quickly, building good credit generally takes longer. Be patient, practice responsible credit habits, and your credit score will eventually reflect your financial responsibility.
Additional Tips
- Use a credit monitoring service: These services can help you track your credit score and alert you to any changes.
- Consider a credit repair company: These companies can help you dispute errors on your credit reports and negotiate with creditors to remove negative items.
- Be careful of scams: There are many scams out there that target people with bad credit. Do your research before you use any credit repair services.
Building good credit is an important step towards achieving your financial goals. By following these tips, you can start building a strong credit history and improve your chances of qualifying for loans, credit cards, and other financial products.
Minimize Hard Inquiries
Every time you apply for a new line of credit, your credit report is pulled. This is called a hard inquiry. And it hurts your credit.
If you want to see changes in your credit score as soon as possible, you should cut back on—or stop entirely—the practice of applying for new credit cards.
“The less this happens the better, so stop applying for store cards and lines of credit,” cautions Emanuel. “Each time you do, it’s a hit on your credit score…”.
Balance Your Credit Portfolio
According to Jill Emanuel, a financial coach with Fiscal Fitness Phoenix, carefully controlling the kinds of accounts you have open can help you gradually raise your credit score. This includes limiting consumer credit accounts (credit cards, store cards, and store lines of credit).
“The credit bureaus seek a well-rounded credit portfolio comprising of loans for consumer debt, auto loans, school loans, and mortgages,” says Emanuel. “One of the places people hurt themselves is by having a large number of consumer accounts open. If there are accounts that aren’t being used – close them. ”.
How to Build Your Credit Score FAST! 0 to 700 in Under 6 Months
FAQ
Is 6 months enough to build credit?
Can you get a 700 credit score in 6 months?
Can you raise your credit score 200 points in 6 months?
How fast can you realistically build credit?
How long does it take to build a credit score?
Building a credit score from scratch can take anywhere from a month or two to six months, depending on the type of credit score you are looking at. The two main credit scoring systems vary on how soon they’ll show a score. You can establish a VantageScore within a month or two of having a credit line.
How long does it take to build a good credit history?
As you add more credit accounts over time and use them responsibly, you’ll likely see an increase in your credit scores, and your credit profile will become more solid. Depending on how often you take on new credit, it can take several years to build an excellent credit history.
How long does it take to build a good FICO score?
Consumers who don’t have a long credit history can still have high FICO scores if they practice good credit habits, like making on-time payments and keeping the amount of money they borrow low. That said, it will likely take you longer than six months to build a good score if you’re starting from scratch.
Can you build your credit fast if your score is low?
There may be ways to build your credit fast if your score is lower than you’d like. Depending on what’s holding it down, you may be able to tack on as many as 100 points relatively quickly. Scores in the “fair” and “bad” areas of the credit score ranges could see dramatic results. Is growing your score by 100 points realistic?